Investing in AI

Artificial intelligence will transform the ways we live and work. At Blackstone, we see AI-enablement as a long-term investment theme and a tool for building stronger businesses.

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Scale Matters

All AI relies on data – a resource that Blackstone, as the world’s largest alternative asset manager, has in abundance.

The volume of private market data in our portfolio equips us to spot trends early and invest when we have conviction.

Portfolio Companies^[1]

230+

Real Estate Assets^[2]

~12,500

Annual Portfolio Revenue^[1]

$225B+

1. As of December 31, 2023.
2. As of March 31, 2024.

Early Adopters

Since 2015, Blackstone has been building the capabilities needed to capture the AI opportunity.

Our Chairman, CEO and Co-Founder Steve Schwarzman recognized AI’s potential early on and made founding donations to Oxford and MIT to create centers devoted to its study. Within the firm, our data science team has developed AI technology that aims to position Blackstone at the forefront of our industry. Hear more from Steve and Blackstone President Jon Gray.

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News & Insights

In the News on AI

WSJ: Data-Center Owners Get an Edge Over Big Tech Tenants

Record low vacancy rates coupled with increased demand for space is creating tailwinds for data center operators across the country.

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WSJ: How Wall Street Lenders Are Betting Big on the AI Boom

Explosive growth in AI requires significant capital. Blackstone is proud to expand its existing partnership with CoreWeave, investing behind some of its highest conviction themes, AI and digital infrastructure.

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WSJ: AI’s Unlikely Benefactor

The Wall Street Journal dives into Blackstone Chairman, CEO, and Co-Founder, Steve Schwarzman’s foresight on AI – from a bus ride in Beijing to one of today’s unlikely champions.

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The AI surge will transform data centers

Once-in-a-generation demand poses a unique opportunity for investors.

Business Insider: Big insurance companies want more private credit. Here’s how Blackstone is using AI to win them over

Blackstone CTO John Stecher explains how Blackstone aims to use AI to give insurance clients an edge.

Private Funds CFO: What generative AI means for private equity

Blackstone CTO John Stecher explains why we believe generative AI can enhance private equity dealmaking.

San Antonio Express News: Blackstone exec talks artificial intelligence, cybersecurity and San Antonio

Blackstone Chief Technology Officer John Stecher discusses how we seek to leverage artificial intelligence to help increase efficiency and optimize performance internally and across our portfolio.

CNBC Squawkbox: “Part of Everyone’s Life”

Blackstone Chairman, CEO and Co-Founder Steve Schwarzman discusses why AI is “one of the most exciting developments of a lifetime” and how Blackstone is preparing for the changes it will unleash across the economy.

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Bloomberg: Blackstone Has been Focusing on AI

Blackstone Chief Financial Officer Michael Chae shares why we believe AI will further the advantages of private market investing.

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Bloomberg: Blackstone Is Using AI to Control Diabetes and Slash Spending on Drugs

Andreas Mang, CEO of Blackstone’s Equity Healthcare, explains how we’re using an AI-powered app designed by startup Twin Health to help portfolio company employees manage diabetes without the use of expensive drugs.

Investing in AI-enablement

We’re investing not only in companies that harness AI, but also in the businesses that enable it.

Spotlight on Data Centers

Spotlight on Data Centers

More data has been created in the past three years than in all of human history combined, driven by cloud adoption, content creation and now AI.^[3] All this data needs a place to live, creating demand for data centers and opportunity for Blackstone to invest at scale.

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3. IDC, as of December 31, 2021. 2021 and 2022 represent year-end estimates.

Investment Examples

QTS

Blackstone Infrastructure and Real Estate acquired QTS for approximately $10 billion in 2021 – the largest transaction in data center history at the time and a testament to our long-term conviction in the space. We are partnering with QTS to support its rapid growth: the company signed more leases in 2023 alone than in the 17 years prior to our acquisition.

Vectra

73 Strings

In 2023, Blackstone Innovations Investments backed 73 Strings, a startup whose AI-driven solution helps investors with automated portfolio monitoring and valuation processes for equity and credit assets. As the alternatives industry grows and new investment products emerge, investors increasingly need solutions that equip them to efficiently and accurately manage these workstreams. We saw an opportunity to help 73 Strings fulfill this need, and to partner with the company to accelerate their expansion and product development.

Ontra

In 2021, Blackstone Growth invested in Ontra, which builds AI-powered solutions that digitally transform legal workflows in the private investment industry. With support from Blackstone Data Science, Ontra has further elevated the AI solutions it offers, most recently integrating OpenAI’s GPT-4 model into Ontra Synapse, the AI engine that powers Ontra’s products. We are excited to see how the output of the investment will allow private equity firms to achieve new levels of productivity and success.

Building Strong Businesses with AI

Our team of data scientists works closely with Blackstone portfolio companies on AI strategy and integration, delivering an estimated $200 million of bottom line impact.⁴

Portfolio companies can also access our Blackstone Data Science Community and wider network of CEOs, researchers and senior advisors.

Link Logistics

Link Logistics

Link Logistics operates the largest portfolio of US-only industrial real estate, giving it access to a wealth of rent data and scale across markets. We partnered with the company in its development of a machine learning model that leverages over 2 billion data points to track unique asset level attributes, leasing trends, market fundamentals, and proximity to key demand drivers to help identify the right buildings in the right locations that are experiencing the strongest tenant demand.

Link Logistics Building Exterior

Signature Aviation

Signature Aviation

We partnered with Signature Aviation to develop a machine learning model that helps field leaders align schedules with dynamically forecasted demand. This has helped enhance customer experience by preventing understaffing on peak days while improving the company’s operational performance.

Signature Aviation Professional Working on Engine

4. As of June 30, 2024. “Bottom line impact” refers to EBIDTA impact, which is determined by: (i) identifying operational key performance indicators (KPIs) that may benefit from AI, (ii) measuring those KPIs both before and after the implementation of the AI model, and (iii) translating the impact on relevant KPIs to EBITDA. Methodologies for calculating EBIDTA impact vary based on the facts and circumstances associated with participating portfolio companies and are subject to limitations including the amount, nature and quality of available data. While the implementation of AI correlates with an increase in EBITDA among the portfolio companies included, there can be no assurance that such EBITDA increase was not caused by other factors in addition to or in spite of implementation of AI programs.

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